Risk financing project to increase small-scale farmers’ resilience

AMMAN — Minister of Agriculture Khalid Hneifat on Wednesday attended the launch of the Insurance Inclusion and Risk Financing project.

The project is being implemented in partnership between the United Nations Development Programme (UNDP), the German government, and the Insurance Development Forum (IDF) to integrate risk insurance into the development process and highlight the importance of integrated solutions for insurance, risk financing, and investment to raise awareness of comprehensive insurance and risk financing, according to a statement.

The project aims to increase the resilience of vulnerable/small-scale farmers and producers against production and market risks in the agricultural sector, especially those arising from the impact of climate change and other infrastructure risks. 

Necessary measures will be taken to reduce risks in the agricultural sector and investment and to encourage the private sector to participate in the process of developing the agricultural sector. 

In addition, it aims to increase farmers' ability to access financing and to enhance the role of the Central Bank of Jordan (CBJ) in establishing institutional governance rules in comprehensive insurance and risk financing tools in insurance companies, and implementing financial inclusion policies.

During a ceremony featuring the participation of CBJ Governor Adel Sharakas, and Randa Abu Al Hosn, Resident Representative of UNDP in Jordan, Hneifat highlighted the role of the National Plan for Sustainable Agriculture in improving all agricultural sectors and creating integration and development in light of extended crises, such as climate and regional changes, and the need to develop a system that reduces risks in agricultural investments. He also stressed the need to conduct the necessary studies for the plan. 

The UNDP representative noted that the Insurance Inclusion and Risk Financing project is an important safety network to protect people, lives and livelihoods from the impact of crises. She added that UNDP will work to enhance innovation and creativity to help change systems and confront the challenges that hinder achieving development goals.

Sharkas highlighted that the CBJ has taken several steps towards improving and promoting financial inclusion, such as the introduction of a microfinance company system, which will enable micro and small companies to obtain financing. 

The CBJ has strengthened consumer protection measures and promoted financial and banking literacy in society, he noted, adding that the bank has played a vital role in developing the national payment system by introducing electronic payment systems and mobile payment systems. He said that these initiatives have helped to reach people in remote areas and improve access to financial services.